Implementing EOS

What is the Entrepreneurial Operating System? 

EOS, or the Entrepreneurial Operating System, provides a powerful yet simple approach to running a company – it was founded by lifelong entrepreneur Gino Wickman, who identified six key components that are essential to the success of any business.

The goal of EOS is to strengthen six key components of business – the EOS model is built on the premise that the common problems small/medium-sized businesses face are symptoms of issues in these six key areas. These areas are:

• Vision 
• People
• Data
• Process
• Ability to Solve Issues
• Traction

What are the business benefits of implementing it?

It creates a common language – which makes it particularly appealing to investors and board members. This shared understanding makes managing their portfolios easier, as everyone is looking at similar ways of operating and similar metrics.

Simplification and efficiency benefits – streamlining company management is an upfront investment that yields long-term dividends, which not only benefits the company but also partners and investors.

Consistency and transparency of operating in a 90-day world – EOS breaks down priorities into manageable chunks. This cadence creates consistency and transparency for private equity firms, making it easier for them to manage their portfolios.

Vision alignment  – often for the first time, particularly in scenarios where co-founders may have divergent ideas about the company’s present and future, everyone is on the same page and focused on a unified direction.

Investability – according to research by Vistage, 50% of CEOs in the US are either planning to sell their company or acquire a company by 2029. This statistic highlights a significant trend in the business landscape, presenting both challenges and opportunities for companies. One of the key value propositions of EOS is helping companies become “Built to Sell,” making it particularly appealing to those preparing businesses for successful transitions, whether through sale or acquisition.

What kinds of companies or entrepreneurs is EOS best suited for?

EOS is designed for entrepreneurial-led, small to mid-sized private companies – however, as EOS has become more widely adopted across many different industries, some implementers work with larger companies.

Companies with between 5-5000 employees are ideal candidates – EOS is applicable to companies of all revenue sizes—the more important factor when considering whether EOS is the right fit for a company is its stage of development. 

Seed-stage companies are typically not a good fit – because EOS is focused on the execution side of business, it’s more suitable for businesses that have already established product-market fit, have traction in terms of revenue, and are looking to scale and grow.  

Who needs to be involved in implementing EOS? What are the roles of each party?

Leadership Team
Role	It is the responsibility of the leadership team to prepare for company rollout – within the first six months to a year, the leadership team should have fully implemented all the necessary tools and processes. Once these are in place, they are rolled out to the entire company. This is what gets traction and ensures that everyone is working towards the same goals. The leadership team members generally involved are:
Tips	If there are multiple founders, they generally work together using their individual strengths to implement the tools and processes of EOS among the C-Suite. Founders are either: • Integrators – run the day-to-day operations of the business • Visionaries – take a bird’s eye view of the company and are responsible for the bigger picture

Leadership team:

• Founder(s)
  • Integrators – run the day-to-day operations of the business
  • Visionaries – take a bird’s eye view of the company and are responsible for the bigger picture 
• C-Suite 
  • They work with founders to implement EOS at the departmental level.
  • The most commonly involved department heads are:
    • Head of Sales
    • Head of Marketing
    • Head of Operations
    • Head of Finance

Investors/Board:

• The level of involvement of investors and board members can vary – depending on their involvement in the portfolio companies. EOS offers the flexibility to accommodate different levels of involvement, making it a versatile tool for portfolio management.
  • Investors can either have a Hands-On Approach or indirect involvement – investors and board members who want a more hands-on approach can be built into the cadence of the meeting pulse. investors and board members choose to have the portfolio companies work directly with EOS implementers 

Employees: 

• Employees below the leadership level are not just passive recipients – they play a crucial role in the implementation of the company’s vision and goals.
  • Every employee in the company should have a measurable goal – that aligns with the company’s 90-day, annual, three-year, and ten-year goals. This ensures that everyone is working towards the same objectives and that their individual contributions are directly linked to the company’s success.
  • Employees should have regular meeting pulses – depending on the function and what makes sense for the team, this could be a weekly meeting of varying lengths. During these meetings, teams discuss their rocks, scorecards, and whether they are on or off track. Time is spent working through these issues together. 

Implementer: 

• An implementer is not always necessary for every company – some companies choose to self-implement, and this can be successful. However, there are instances where companies get stuck; this is where an implementer comes in. They can help by taking a few different forms:
  • Accountability Partners – implementers provide accountability, ensuring that the company stays on track with its goals and objectives. They act as a driving force, pushing the company forward when it gets stuck.
  • Outside Perspective – as an outsider, implementers can see the company from a clear, unbiased perspective. This allows them to identify issues and areas for improvement that may not be apparent to those within the company.
  • Knowledge Providers – implementers bring with them a wealth of knowledge and experience from past roles. They can provide valuable insights and advice based on their previous experiences.
  • Problem Solvers – One of the biggest reasons companies hire implementers is to help them work through their people issues. Implementers provide a framework and tools to help companies solve these issues. They can identify culture issues or toxic individuals and provide steps to address these problems.

What do you need to have prepared or instilled in your organization ahead of time?

Establish a strong product-market fit – before implementing, it’s crucial that your product or service meets a strong market demand and has a unique value proposition that differentiates it from competitors.

An organization with multiple team members – EOS is about driving execution, aligning your team, and addressing people issues. Therefore, it’s essential to have a team in place. 

Private company status – being a private company allows for more direct work with the POS and the ability to make changes without external pressures. This flexibility is a significant advantage when implementing a POS.

Openness and growth mindset – a successful POS implementation requires an organization to be open, honest, and vulnerable. A growth mindset is also crucial, as the organization must be ready to embrace changes and improvements.

How long does implementing EOS take? What are the key steps and milestones?

A company is considered fully implemented when it runs like a well-oiled machine – and they no longer feel the need for an implementer. The setup process is generally complete within 90 days, but many keep the implementer on longer to hold them accountable. It may take one year or longer. Some companies choose to keep the implementer on full-time, but the general purpose is to help a company implement and then step away.

*Key Terms:

• Rock –  rocks are a way of defining goals within the context of a 90-day world. It’s an annual target broken down into quarters. They are the highest priority items to ensure the company is on track to hit its annual goal.
• Pulse – the pulse is the cadence of recurring meetings. 
• Accountability Chart – accountability charts are a way to ensure that each rock has a person attached and accountable for its success. It can also be used in structuring and restructuring the company leadership team.

Set Up Process (90 days):

Initial 90-Minute Meeting
What it is	This is a complimentary first meeting where a company considering EOS gets to understand the process.
What it covers	1. EOS implementer opens up their toolbox, share about EOS, and outline what the journey of implementing EOS would look like, including the commitment required from the team. 2. It is usually very useful for the whole senior leadership to attend to ensure that everyone is on the same page.

Focus Day
What it is	This is the foundational day with the leadership team.
What it covers	1. The team discusses the concept of “hitting the ceiling” and the five leadership abilities to break through it 2. The team also works on the accountability chart at the leadership level and identifies the quarterly rocks for the company 3. The meeting pulse is established, and the team spends the majority of the meeting solving issues – not just talking about them 4. The scorecard is also introduced, which evolves over time. Metrics included in the scorecard include sales and marketing goals, and what company-wide numbers leadership needs to see to be successful

Weekly Meeting Pulse
What it is	The senior leadership team meets every week for 90 minutes. This meeting drives traction and momentum toward the 90-day rocks.
What it covers	1. The leaders review the scorecard and discuss company rocks and employee or customer highlights 2. Move to the IDS (Identify, Discuss, Solve) process. IDS usually results in action items that are then brought up to the next meeting – If there are action items that were a result of the IDS session, the top third of the meeting updates on the actions from the previous meeting – IDS sessions help discover both issues and opportunities

Vision Building Days 1 & 2
What it is	The leadership team meets for a high-level analysis and determines exactly where the company is going to go and how they plan to get there.  These are spaced 30 days apart to give the leadership team more practice with the foundational tools.  At the end of vision building day two, the leadership team should be ready to roll out EOS to the rest of the company.
What it covers	1. 8 specific questions that solidify the big picture plan for the company 2. Core values – How to hire and fire based on these to build a unified team 3. Core focus – Determining where marketing and sales dollars should be spent 4. 10-year target – Marketing strategies; Demographics, geography, and psychographics of ideal customer; Product differentiation and proven process; Refining any guarantees  5. 3-year target – Product portfolio expansion; Measurables, goals, and attributes; Where does the company need to be in 3 years to reach the 10-year target? 6. 1-year target – Where does the company need to be in 1 year to reach the 3-year target? 7. Break 1-year target down into quarterly, or 90-day rocks 8. State of the Company Delivery at the end of Vision Building Day 2; Delivered by leadership team to employees. It is recommended that these are done in person to the extent possible.

Quarterly Meetings
What it is	These are full-day meetings where the leadership team reviews the past 90 days and reevaluates the 90-day priorities.
What it covers	1. Led by implementer (if a company has one) 2. These are not the same as quarterly company meetings, although it is recommended to have those in addition 3. The team looks back at the previous 90-day rocks, analyzes their success and failures, and then moves forward, creating new rocks for the quarter

Annual Planning
What it is	Led by implementer (if a company has one) These are not the same as quarterly company meetings, although it is recommended to have those in addition The team looks back at the previous 90-day rocks, analyzes their success and failures, and then moves forward, creating new rocks for the quarter
What it covers	1. The leadership team gathers to recheck team health, priorities, core focus, and other areas. 2. With a thorough analysis made here, their next year should move smoothly

What are the components of EOS?

Vision
What it is	A clear and compelling picture of where the organization is headed and what it aims to achieve in the future. It encompasses both long-term aspirations and shorter-term objectives, providing a guiding framework for decision-making and strategic planning.  Vision is essential for aligning all members of the organization toward common goals and ensuring that everyone understands and shares the direction in which the company is heading.
How to tool it	1. The leadership team gathers to recheck team health, priorities, core focus, and other areas. 2. With a thorough analysis made here, their next year should move smoothly

People
What it is	Ensuring that the organization has the right people in the right seats to achieve its vision and goals.  It encompasses aspects such as defining organizational structure, identifying key roles and responsibilities, aligning team members with the company’s core values, and fostering a culture of accountability and performance.
How to tool it	People Analyzer Tool –  this tool assesses individuals based on three key criteria: Do they understand their role? Do they have the capability to perform effectively in their role? Do they actively want to fulfill their role?  Accountability Chart – a visual representation of the organization’s structure that outlines the roles and responsibilities for each position. It starts with defining the ideal structure and then aligns the right people with the right roles using insights from the People Analyzer Tool.  Clear alignment with core values – each role is explicitly aligned with specific responsibilities, leaving no room for ambiguity or overlap.  Building a leaner structure – by streamlining the hiring process and ensuring that individuals are placed in roles where they can succeed, EOS can lead to a more efficient organizational structure. This may involve reevaluating existing roles and responsibilities to create a leaner and more effective workforce.

Process
What it is	Defining and optimizing the core workflows and procedures that drive the organization’s operations.  It encompasses the development of standardized processes, streamlining workflows, eliminating inefficiencies, and promoting consistency and scalability throughout the organization.
How to tool it	Identifying and simplifying core processes first – these are the fundamental workflows that drive the organization’s operations, including operations, sales, marketing, customer success, finance, and accounting processes, among others. 3 Step Process Document – Many companies either have overly complex processes or lack documentation altogether. Rather than overwhelming teams with extensive manuals, EOS advocates for documenting only 20% of the steps necessary to achieve 80% of the desired outcome. Trained and followed by all – all team members must be trained and consistently follow these processes. This promotes consistency, scalability, and profitability within the organization.

Data
What it is	Identifying the handful of numbers and key metrics to measure weekly to give a pulse of progress toward traction. Leveraging data-driven insights to inform decision-making, track performance, and drive continuous improvement within the organization.  It encompasses the collection, analysis, and utilization of relevant data to monitor key performance indicators (KPIs), identify trends, and measure progress toward organizational goals.
How to tool it	Address data issues by simplifying data management – often, organizations either have an overwhelming amount of data or fail to capture essential data points. EOS guides leadership teams to identify the key numbers necessary to gauge the company’s performance with the scorecard tool and measurables. Identify critical metrics that define progress – these metrics are typically limited to 5 to 15 simple yet impactful numbers. Monitor data on a weekly basis – is emphasized as a minimum requirement. This frequent review allows the leadership team to stay informed about the company’s performance trends and promptly address any deviations from the desired trajectory.

Traction®
What it is	Traction® helps leaders become more disciplined and accountable so they can achieve every part of their Vision.  It encompasses the practical application of strategic plans, the implementation of key initiatives, and the consistent progress towards desired outcomes.
How to tool it	AdVision without traction is hallucination – EOS ensures that companies not only have a clear vision but also have the tools and processes in place to execute that vision and gain tangible traction toward their goals. Weekly Meeting Pulse: these meetings follow a specific agenda, focusing on reviewing the company’s scorecard to determine if it’s on or off track, discussing quarterly rocks, and problem-solving. This regular cadence ensures alignment and accountability among the leadership team. Simplification as a means to execute – by streamlining processes, clarifying roles and responsibilities, and focusing on what truly matters, companies can overcome obstacles and make steady progress toward their vision.

Issues
What it is	Refers to identifying, prioritizing, and resolving obstacles or challenges that hinder the organization’s progress toward its goals. These issues can arise in various areas of the business, such as operations, strategy, communication, or team dynamics.
How to tool it	Root cause analysis: EOS provides a structured process for identifying the root causes rather than merely discussing symptoms. This approach helps leadership teams move beyond surface-level discussions and pinpoint the underlying factors contributing to the problem. Solving issues with the IDS system: Once the root cause is identified, EOS facilitates swift action to resolve the issue. Through collaborative problem-solving sessions, leadership teams devise actionable solutions and assign responsibilities to ensure implementation. This proactive approach ensures that issues are not just talked about but actively resolved. Accountability and follow-up – action items are assigned to specific individuals within the leadership team. These action items are tracked and followed up on during subsequent meetings, ensuring that results are achieved. Moving from strategy to execution – EOS helps leadership teams transition from strategic discussions to actionable execution. By providing a systematic approach to issue-solving and accountability, EOS empowers companies to overcome obstacles and drive progress toward their goals.

How do you ensure that employees are as bought in as leadership? How do you onboard new employees into EOS?

Align hiring with core values and culture – before bringing new people into EOS, ensure that your company’s core values and culture are clearly defined. Use these as guiding principles during the hiring process, emphasizing alignment with these values as a crucial criteria for candidates. 

Integrate EOS into the hiring process – during interviews, articulate your company’s vision. This not only attracts candidates who resonate with your direction but also ensures they are already familiar with EOS principles before joining the team.

Facilitate a seamless transition – once hired, smoothly integrate new team members into the EOS framework. This involves familiarizing them with EOS practices, such as the eight questions, during onboarding sessions. 

Encourage active participation – empower new hires to ask questions, share insights, and contribute to discussions about the company’s vision and strategy within the EOS framework. This promotes a sense of ownership and alignment from day one.

What are common pitfalls?

Navigating senior leadership changes – new leaders coming on board must be aligned with the EOS journey and fully bought into the methodology. Failing to onboard new leaders effectively or bringing in individuals who are not supportive of EOS can lead to friction and disrupt the implementation process.

People issues that arise as a result of the EOS implementation – while the process can be transformational for organizations, it also requires leaders to make changes that may be uncomfortable for some individuals. This discomfort can create challenges and resistance within the organization as people adjust to new ways of working. Addressing these people issues effectively is essential for successfully navigating the EOS journey.